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Take time to learn about credit

April is a lot of things: It's the month of showers that traditionally heralds the flowers of spring. It's national Autism Awareness month. It's the last month to file tax returns on time without an extension. But did you know that April is also Financial Literacy Month?

Throughout the month of April, many financial organizations offer programs, information and links to customers and potential customers in an attempt to boost overall education about issues such as budgeting, saving and credit. As many experts point out, however, learning about credit isn't always easy.

Credit itself -- how you get it, where it comes from and how you pay it back -- all depends on your personal situation. Details such as your past credit history, your employment and earnings potential and your current household expenses can all be used to determine your creditworthiness. Overwhelmingly, though, lenders turn to the FICO score that appears in your credit report.

How a certain FICO score is attached to you remains a bit of a mystery. While financial experts draw educated conclusions that are fairly accurate about how different actions impact credit scores, the formula itself it top secret. It's proprietary, meaning that it is owned by the FICO company and sold to the credit bureaus, who can't divulge what they don't own the full rights to.

While you can't find out the exact formula for determining a FICO score, you can take time to understand your personal debt situation. You can learn how to positively impact that situation and discover whether you are able to pay the debt you currently owe. With help from an experienced professional, you can also understand how bankruptcy can improve your situation and what options are available to you.

Source: HuffPost Business, "Financial Literary Month - How We Learn About Credit," Charlie Scanlon, April 05, 2016

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